Published: September 23, 2024 |

[Click image to enlarge]

The U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED) issued a notice of intent (NOI) to fund up to $1.8 billion for the design, construction, and operation of mid- and large-scale commercial direct air capture (DAC) facilities and infrastructure scaling platforms.

This funding supports a broad range of promising DAC technologies on their path to commercialization and deployment that can spur the growth of additional DAC Hubs. As part of the Regional DAC Hubs program, this funding will help support an ecosystem of projects that aim to remove carbon dioxide (CO₂) from the atmosphere.

DAC is a process that separates CO₂ from the air, helping to reduce legacy CO₂ in the atmosphere. The separated CO₂ can then be safely and permanently stored deep underground or converted into useful carbon-containing products like concrete that prevent its release back into the atmosphere.

The anticipated funding announced today aims to provide potential applicants with flexible and comprehensive pathways to spur the development of commercial DAC facilities, including DAC facilities at mid- to large-scale along with supporting infrastructure, and expand to Regional DAC Hubs.

OCED, in collaboration with the Office of Fossil Energy and Carbon Management, intends to offer funding in recurring openings across multiple years due to the rapidly advancing DAC field. This intentional flexibility in funding provides more opportunities to benefit from the latest generations of DAC technology and ensure the funding supports the highest-impact projects.

OCED anticipates offering funding in the following three topic areas: 

• Topic Area 1: Funding 1-3 infrastructure scaling platforms, or host sites, to provide DAC developers with a place to build and operate facilities with access to clean energy and shared CO₂ post-capture processing. Maximum of $250 million for a single project. 

• Topic Area 2: Funding 4-8 mid-scale commercial DAC facilities with a capture capacity between 2,000 and 25,000 tons of CO₂ per year. Maximum of $50 million for a single project. 

• Topic Area 3: Funding 2-6 large-scale commercial DAC facilities with a minimum capture capacity of 25,000 tons of CO₂ per year. Maximum of $600 million for a single project.

Projects in all topic areas will require a 50 percent minimum non-federal cost share.

In addition to funding for large-scale facilities, the anticipated funding would also support the development of Regional DAC Hubs by providing the DAC industry with more comprehensive support as it continues to commercialize new technologies. Funding for mid-scale capture facilities and complementary infrastructure platforms is a critical step to help earlier stage developers prove out their technology and business model before advancing to larger-scale demonstrations. While the majority of the program’s funding is envisioned for larger-scale facilities, the funding for mid-scale facilities and supporting platforms is planned to fill this critical gap by increasing the likelihood of success and impact of the anticipated four Regional DAC Hubs.

OCED anticipates that the funding solicitation will be released in the winter of 2024. Potential applicants can register for the informational webinar on October 10, 2024 HERE.

OCED is also planning to hold an in-person Industry Day in November to facilitate partnerships among eligible applicant teams. Learn more and register for the upcoming Industry Day HERE.

Please visit the OCED website to learn more about upcoming engagement opportunities related to this NOI.

Be in-the-know when you’re on-the-go!

CLICK HERE to register your email address.

Copyright © 2024 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

For licensing permission, .(JavaScript must be enabled to view this email address)